Prediction market platform Kalshi has suspended and fined a video editor for MrBeast after determining he used confidential information from his job to place winning bets on markets tied to the YouTuber’s content, marking the company’s first public disclosure of an insider trading investigation.
Kalshi identified the trader as Artem Kaptur, an employee of Beast Industries (MrBeast’s company), who wagered approximately $4,000 on low-odds markets related to MrBeast videos, subscriber milestones, and personal events. Investigators found Kaptur achieved “near-perfect trading success” on these bets, raising red flags that he leveraged non-public details about upcoming video outcomes, statements, or timing.
“Kalshi investigators discovered that the trader was employed as an editor for the streamer’s show and likely had access to material non-public information connected to his trading,” said Robert DeNault, Kalshi’s head of enforcement.
Kalshi froze Kaptur’s account, preventing withdrawal of any profits, imposed a $20,000 fine, and banned him from the platform for two years. The company reported the case to the Commodity Futures Trading Commission (CFTC), which regulates prediction markets as futures contracts. Using confidential information to trade is prohibited by Kalshi rules and potentially violates federal law.
A spokesman for Beast Industries stated the company has “no tolerance” for insider trading and maintains a longstanding policy banning employees from trading on MrBeast-related prediction markets to uphold ethical standards.
Kalshi simultaneously disclosed a separate enforcement action against Kyle Langford, a former longshot Republican candidate in California’s gubernatorial race. Langford posted on X in May encouraging bets on himself to win and placed a $200 wager. Kalshi banned him for five years and fined him $1,000, stating candidates should follow but not trade on their own markets.
The disclosures come amid explosive growth in prediction markets like Kalshi and Polymarket during President Trump’s second term. The industry has benefited from Trump administration support, including dropped federal probes and resistance to state gambling-law challenges. Active markets have surged from a few dozen annually to over 200,000, covering everything from election outcomes and celebrity statements to weather events.
However, the boom has heightened insider trading concerns. Recent examples include a $400,000 Polymarket profit on Venezuelan leader Nicolás Maduro’s capture before public confirmation, and Israeli arrests over bets on military operations in Iran using classified info. Kalshi reported opening 200 insider trading investigations in the past year, with 12 ongoing.
“No system is perfect. No financial exchange is immune from bad actors,” DeNault said. “We’re committed to deterring and finding the bad actors, manipulators, and those who willingly cheat.” Fines from both cases will be donated to a nonprofit focused on derivatives education.
The MrBeast case highlights vulnerabilities in prediction markets where proximity to high-profile figures (celebrities, politicians, executives) creates insider advantages. As these platforms gain mainstream traction, federal oversight and platform enforcement will face increasing scrutiny to protect market integrity.
